Moderna Inc (MRNA)
Cash conversion cycle
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 10.31 | 23.97 | 42.71 | 40.24 | 50.73 | 135.45 | 137.24 | 161.54 | 155.93 | 166.15 | 183.51 | 405.53 | 86.29 | — | — | — | — | — | ||
| Days of sales outstanding (DSO) | days | 55.09 | 82.74 | 20.73 | 35.85 | 30.73 | 47.27 | 44.33 | 53.51 | 64.12 | 98.69 | 107.70 | 429.93 | 636.49 | 297.44 | 140.59 | 109.08 | 73.98 | 68.28 | ||
| Number of days of payables | days | 26.55 | 24.31 | 18.52 | 21.38 | 26.03 | 21.52 | 12.93 | 16.55 | 32.68 | 14.98 | 21.98 | 6.57 | 33.05 | 55.17 | 59.70 | 37.70 | 23.54 | 18.27 | ||
| Cash conversion cycle | days | 38.85 | 82.39 | 44.92 | 54.70 | 55.43 | 161.20 | 168.64 | 198.49 | 187.38 | 249.86 | 269.23 | 828.90 | 689.73 | 242.27 | 80.89 | 71.38 | 50.44 | 50.00 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 10.31 + 55.09 – 26.55
= 38.85
The cash conversion cycle of Moderna Inc has been fluctuating over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 33.91 days, which indicates that it took Moderna approximately 33.91 days to convert its investments in raw materials into cash flows from sales. This represents a significant improvement compared to the previous quarter, Q3 2023, when the cash conversion cycle was 82.94 days, highlighting more efficient management of working capital.
Looking back further, in Q2 2023, the cash conversion cycle decreased to 49.76 days, showing a positive trend in working capital management. However, in Q1 2023, there was a slight increase in the cash conversion cycle to 74.06 days, indicating some challenges in converting investments into cash during that period.
Comparing these recent quarters to the corresponding quarters in the prior year, there has been an overall enhancement in managing the cash conversion cycle. For instance, in Q4 2022, the cash conversion cycle was notably higher at 80.97 days, indicating improvement in cash flow management since then.
Further back, in Q3 2022, the cash conversion cycle was much longer at 206.19 days, which suggests that the company struggled with working capital efficiency during that period. Q2 2022 and Q1 2022 also showed extended cash conversion cycles of 243.60 days and 281.22 days, respectively, indicating significant challenges in converting investments into cash flow during those quarters.
Overall, Moderna Inc has exhibited fluctuations in its cash conversion cycle over the past eight quarters, with recent quarters showing improvements in working capital management. The company's ability to efficiently convert investments into cash flows from sales has a direct impact on its liquidity and financial performance, highlighting the importance of monitoring and optimizing the cash conversion cycle.
Peer comparison
Dec 31, 2023